Do you have an airplane that you enjoy offering rides in, or do your friends know that they have a friend with benefits? If so, you might want to make sure that you structure your friend’s airplane rides in a way that will keep you out of IRS and FAA scrutiny. As pilots or people involved in aviation, we often see what is commonly referred to as 134 ½. This term is a reference about to the “illegal” charter that often happens when aircraft owners offer others a ride in their aircraft for a fee.
The FAA has a number of regulations that offer guidance regarding the use of one’s aircraft for compensation or benefit. The first regulations to understand are those that pertain to the actual pilot and whether or not he is certified to offer his services for hire. These regulations can be found in the FAA’s Federal Aviation Regulations (FAR’s) part 61.113 (Private Pilot Privileges and Limitations) and part 61.133 (Commercial Pilot Privileges and Limitations).
The second section of regulations pertain to the aircraft. FAR’s 91 and 135 specify whether an aircraft can be used “for hire” or for corporate use. There are many areas within the FAR’s that are gray and ambiguous. For questions or help with your current operation, please feel free to give us a call. We have been in business since 1958, and have developed an operational awareness for the regulations that govern our industry sector. It is our desire to help you continue to reap the benefits that aviation offers all of us.
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